U.S. Investment Firms Challenge Puerto Rico Restructuring Law

Wall Street Firms Say Law Violates U.S. Constitution

A pair of Wall Street investment firms is challenging Puerto Rico's new law allowing some public agencies to restructure their debt, saying it violates the U.S. Constitution.

Funds managed by Franklin Templeton Investments and OppenheimerFunds Inc. asked the U.S. District Court for the District of Puerto Rico to block the law, arguing that only Congress is allowed to create bankruptcy rules. The funds hold about $1.7 billion combined...